How much home can you realistically afford based on your income?
Lenders use your Debt-to-Income (DTI) ratio to decide how much mortgage you qualify for. The formula: (monthly debts + proposed mortgage payment) ÷ monthly gross income. 28% is conservative, 36% is standard, 43% is the max most lenders allow. This calculator also includes estimated taxes and insurance in the affordability figure.
Lenders look at more than DTI — credit, employment, and down payment all factor in. Get a real pre-approval number.